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Karen Finerman: This Company Benefits from Major Trend Shift

If anybody does their homework it’s Karen Finerman and after crunching the numbers she thinks one company is well positioned to benefit from a major upcoming trend.

Specifically, she thinks Polycom is a buy.

”About two weeks ago Polycom earnings were really quite disappointing and the stock was crushed,” Finerman says. For the first time since 2009, Polycom forecast less than 20 percent revenue growth in a quarter and investors who were looking for sharp growth hit the sell button.

“But I love the fundamental story," Finerman says. ”I think we’re going to see tremendous growth – high teens revenue growth and big margin expansion."

In other words, the pull back is a buying opportunity.

Finerman is enthusiastic because she thinks Polycom benefits from a sea change underway at companies both in the US and abroad; that is voice and video conferencing, which she believes will be the way of the future.

“I don’t think it will just be that video conferencing replaces some business travel, I think it will be on every desk. Every employee will have that capability, at every work station.”

And Polycom is only one of two big players in the industry – the other being Cisco . “That makes the company a big beneficiary from the trend."

But that’s not all – Finerman is a value gal so she also looks at the bottom line. “They have a balance sheet I love,” she says.

"Add it all up, and you have a company with strong market share, a good balance sheet, earnings growth and a secular growth story," she says.

Now that's Finerman's kind of company.




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Trader disclosure: On Nov 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long CAT; Terranova is long CVI; Terranova is long VRTS; Terranova is long APC; Terranova is long F; Terranova is long EMC; Terranova is long AAPL; Terranova is long IBM; Terranova is long JOYG; Terranova is long LULU; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT

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